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222 .f 6/3/68 McNutt Room Eugene, Oregon June 3, 1968' ~. -."". The special meeting of the Common Council of the City of Eugene, Oregon was called to order at 12:00 p.m. on June 3, 1968 in the McNutt Room by His Honor Mayor Edwin E. Cone. The councilmen present were Mr. Anderson, Mrs. Lauris, Dr. Purdy, Mr. McNutt, Mr. Lassen, Mrs. Hayward, Mr. McDonald and Mr. Wingard. DISCUSSION ON TAX' BASE ELECTION 1 The City Manager displayed a map showing the voting precincts and whether or not they voted tor the tax base increase on the May 28, 1968 ballot. He noted those voting in favor of'the new tax base were primarily people in University oriented and/or influenced areas. The City Manager stated that as a result of the tax base election, department heads have been asked to hold up on any bid awards which involve City general funds and depending on the action of the Council that the Parks and Recreation Director hold up on th~ aate"for,'call for bids on the Echo Hollow Pool until after the budget is balanced if necessary. ~' ,," Mr. McDonald asked what areas could be cut to reduce the budget. The City Manager said $250,000 could be cut from public improvements, eliminating all paving projects and traffic signals except those already committed and all park purchase and development programs except Peterson and the riverfront project. He said this would still leave about $329,000 to trim off the budget, and that this would have to be done department-by-department. .. -'i "" Mr. Anderson moved'seconded by Mrs. Lauris to hold a special election on June 18, 1968 to seek the voters support of a levy outside the 6% limitation Jor"~.?~Aiie~L to.:.~~l~~ce the 1968-69 budget. Mr. Anderson stated the tax base election defeat was not a direct rejection of the budget but in effect the method of financing, and that the voters had not really said they did not want the facilities, improvements, services, etc. for the coming year. The only way to determine this is with a special election. The City Manager explained that a voters pamphlet would be the only legal way of getting information out to the public since City general funds cannot be spent for other kinds of promotional material. He said the cost of such a pamphlet would be approximately $2,100. Several council members stated they were not in favor of having a voters pamphlet due to the cost and probable ineffectiveness. The City Manager said the alternative to a special levy election would be to reduce the amount of the proposed budget and resubmit it or go to special levies. He stated special levies would be very impractical as there was no bne single item in the budget which could be completely cut out. ;4! Mr. Wingard asked what percentage $587,281 is over the 6% limitation and the City Manager stated it was about 20% over~ The City Manager explained there would be no increase in taxes on a particular piece of property in the coming year unless the property was reassessed but that the following year there would be an increase. He said this estimate of taxes on property was assuming a 7% increase in assessed valuation which is the average over the past 10 ~ears. Mayor Cone stated he believes people are very tax-minded and that'the budget should be cut in the areas of parks and recreation and that salary increases should be cut back to a 3.5% increase. . The City Manager stated that cuts could be made in public improvements and personal services, the latter without cutting the scale set by the Budget Committee. The City Manager stated the public improvements budget as approved by the Budget Committee is already $50,000 below last years, parks improvements and new park purchases $70,000 below, and fire building and equipment $69,000 below last year's budget. The only capital improvement items higher are traffic signals ($25,000) and improvements on City Hall building ($26,000). He explained the reason the budget last year was kept within the 6% limitation was because of other revenues and that these ~ revenues are not available this year. .. ...,., A rollcall vote was taken on the motion as stated, and motion carried, Mr. McDonald voting no. The Mayor was asked to appoint a committee to work on promotion of the tax base election . 2 Dr. Purdy moved seconded by 'Mr. McNutt to postpone the bid opening on Echo Hollow Pool from June 12 to June 19, 1968. Motion carried, Mrs. Hayward and Mr. McDonald voting no. Mrs. Lauris asked if the City was legally responsible to build the pool and the City Manager stated the City is commited to build the pool but there is no deadline date On it. '. ~ Dr. Purdy suggested the possibility of a news release from the City Manager's office on what is going to happen with Laurelwood and that it is not part of the $587,281 amount being voted on. .;, 3 The City Manager submitted a schedule of proposed fees for swim classes for the summer 1968 and explained that the Parks and Recreation Department has not charged for these services in the past. The Director of Parks and Recreation commented the rising costs of pool operation require more revenue and that all other pools in the area have always charged fees for these services. He also I ~. ~ 6/3/68-1